Dow Suffers Second-Straight Drop After Record Run

3/18/2013 4:38PM

Stocks sold off ahead of the closing bell, giving up short-lived gains for the Dow industrials, as investors weighed the odds Cyprus's bailout plan will lead to broader weakness in the euro zone's financial system. Jonathan Cheng reports. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... a chart of the Dow Jones ... which finished off about sixty two points ... he also having the Singapore's five hundred Index down ... about nine points and the Nasdaq composite down ... about eleven Joinus but onset ... Jonathan Cheng Wall Street Journal ... everything Markets reporter ... he's joined us ... but yet so I can and I woke up this morning some Cyprus had lots of this is going to be ... a bloodbath the Nikkei is up two percent and Europe's down to ... sixty two points isn't ... that that what happened how we bounce back full force all I mean look you right yesterday there was a lot were a double what might happen today ... I think you have a couple things going on first of all it's not clear at all but the center's plan is gonna go through ... the sale of the headlines that say that now ... the PA this'll be protective perhaps of two hundred thousand euros and we'll really know what ... but it is not just talking points here so far ... but I think there's some confidence that the reaction is causing a listing that these guys are going to go through that they may not have the votes to do it ... in the first place ... and perhaps perhaps the markets here sunny amass a trip ... to ... the decision makers the authorities here that ... you don't mess with the pot I think that's that's that's basically what you're hearing today I mean this this is the isthe precedent that sets ... you messing with the boss is now ... renewed in Cyprus for the coolest thing McCabe believes its debt contagion were we talk about so much ... it's not Cyprus is a country of one point one million people that ... we had the good and it is the ramifications of that going for right ... any agenda Nedoss look like the Dow might actually finish the day in positive territory once ... briefly positive in the afternoon ... aam ... and Topley headwinds here firstly have three big banks did Goldman Sachs and Morgan Stanley and yet Deutsche Bank all coming out and saying ... we love equities ... Morgan Stanley because and then there's ... the seriousness of the sale of ECRI's they raise their expectations outsider ... that's right and they are now predicting that we finished the SB five hundred above ... sixteen and the most these cases by the end of the year and that so ... far cry from from when we started the year and I think people are looking at what's happened over the past two weeks in the store and say well ... really need some look at the upside ... he got sausage Hewlett-Packard up sixty percent above the city with a big reader today ... Apple which has been ... pummeled ... realistic is that yes Hewlett-Packard ... was one of the worst stock performers ... of two thousand and twelve concerts a company that said it's not going to ... turn a profit for years is protected terrible dancing at ... it's up sixty percent this year I was that ... all of the market is a discounting mechanism people in China look ahead ... clearly ... we've traced been a lot of the difficulty of the company is going to face I don't think anyone is buying today has any illusions that HP is magically gonna become ... a better country or ... Yelp settling on Apple's leader anything like that anytime soon but I think the AB it's ... all that pessimism is now based in the eight year now its prices of art can be had there we have one instantly upgrading the stock today in addition to being ... a whole is to be ... but Tom I think there's just this idea that low ... no miracles here but ... um ... maybe it's not worth as little as a once and keep them under the bill with a sixty percent in the still below the lowest ... level that are reached after the OE crisis so wildly down ... bottom in Oneida white op and and it just kept going further down but right now we are now ... doing better though it were on December thirty first but ... by no means are a RHP investors ... happy especially ... if you tell the stock for more than a year ... Tom thank you so much for joining us now is make sure to read more Jonathan's work he stay in Wall Street Journal